In February of the current year, Blue Corporation adopts a plan of complete liquidation. Its only asset is land with a fair market value $200,000 and a basis $150,000 and has a note of $10,000. Blue sells the land for $200,000 and pays off the note plus distributes to Jaime( a 100% shareholder)the proceeds. Jaime has a basis of $300,000 in the stock of Blue.

a.	What amount of loss or gain can Blue Corporation recognize on the distribution of the proceeds to Jaime?
b.	What gain or loss does Jamie recognize?

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